Byron Moore: Retirement approach requires reflection

Question: With my retirement coming up I did what everyone says to do - I interviewed three advisers that I'd either read about or heard about from friends. My problem is that they all tell a different story. One guy is a super big believer in the stock market and says everything will go up in the end. Another guy tells all kinds of scary stories about losing all your money in the stock market. And another seems kind of in between. How do I pick?

This wouldn't be the first time someone has borrowed from Goldie Locks when considering financial strategies. So let me go there one more time.

Let's call the first adviser Mr. Opportunity. By most measures, the U.S. stock market has enjoyed spectacular success when it comes to the long-term creation of wealth. You'd be hard-pressed to find another place to so consistently multiply your wealth over time.

And I'm sure you'd agree with Mr. Opportunity that it would be nice, real nice, if your nest egg could grow during your retirement years so as to keep up with inflation, provide opportunities for additional travel and entertainment and provide a larger legacy to leave to your loved ones.

As I type these words, I'm about 25,000 feet in the air. If everything goes according to plan, I'll have this column written by the time we land.

When I was sitting in the Monroe terminal waiting, if that nice lady with the microphone had said, "Ladies and gentlemen, we're pleased to announce that today's flight has a 95 percent chance of landing safely at your destination," I'm thinking they'd have had an empty flight.

People don't fly on plane with a 5 percent chance of failure (1 out of 20 - yipes!), and most retirees would be surprised to find out how high their statistical chances are of running out of money during retirement, based on the amount of money they are pulling out of their investments.

Obviously the risk goes up the longer you live. But I've seen many studies that calculated a 5 percent or greater chance of running out of money if retirement lasts 30 years or more (this assumes one is withdrawing 4 percent annually from the portfolio - very common).

On the other hand, if you listen to Mr. Safety, you may simply end up with other problems. Avoiding the stock market is not a good strategy; it's just a temporary safety measure. If, for instance, you put all your money in "safe" interest bearing accounts (bonds, bank accounts, credit union accounts), your nest egg may be safe, but those eggs will grow mighty slowly (less than 1 percent).

This is not an endorsement of Mr. Middle Ground, but I will say most people have to seek a balance (imperfect as it may be) between opportunity and safety.

You don't have to be all one or the other. A balanced approach of some stocks, bonds, cash and even insurance - based guaranteed income annuities - is usually the best approach. Make sure any adviser you select has access to and expertise in each of those areas.

Most important, make sure the adviser you select begins her analysis with a plan. A plan that balances the most important blend of opportunity and safety - the one right for you.

Gotta go, plane's landing!

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Byron Moore: Retirement approach requires reflection

Question: With my retirement coming up I did what everyone says to do ? I interviewed three advisers that I'd either read about or heard about from friends. My problem is that they all tell a